HomeMy WebLinkAboutR11-Economic Development Agency
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QEVELOPMENT DEPARTMEQ
OF TIlE CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
REOUEST FOR COMMISSION/COUNCIL ACTION
FROM: KENNETII J. HENDERSON
Executive Director
SUBJECT: FREEWAYHOMECENTER
DATE: JWle2,l994
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Svnonsls ofPrevIool CommilllonlCooncDICommlttH! ActIonl.):
The Community Development Cnmm;..;on, over the past four months, had discussed and taken nwnerous actions in
connection with the acquisition and renovation of the Freeway Home Center.
___________..____________________.._...._________....__....___-------..-------------______00-
Reoommended MotIonl.):
(CnmmRufty Develtt1)mp-nt Commission)
MOTION:
That the Community Development Cnmm;....on approve finAncing for the Freeway Home Center project
subject to the following deal points:
- The Agency to loan directly to Steward and Associates S300,OOO for physical rehabilitation, with
S135,000 already advanced as deposit to be included as a part of the S300,000
Motion Continued to Next Pall.....
Administrator
KENNETIlJ. HENDERSON
Eucutlve Director
Contact Person(s): Kenneth J. HeruI..-.nn
Phone:
5081
Project Area(s):
South F.,a.cd Tndu..crtrial Park (SRIP)
Ward(s): Three (3)
Supporting Data Attached: StalfReoort
FUNDING REQUIREMENTS: Amount: $0 000 000
Source:
Budget Authority:
Commission/Council Notes:
. "Il6-Ol-03.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 06106/1994
Agenda Item Number: II
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REQUEST FOR COMIOSION/COUNCIL ACTION 0
Freeway Home Center
June 1, 1994
Page Number -2-
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Recommended Motion(a) Continued:
That the Agency guarantee an outside bank loan in $700,000 for Steward
and Associates in addition to the guarantee of $1.5 million from Valley
Bank.
Two-hundred thousand dollars of the above $700,000 will be added to
the $1.5 million from Valley Bank to acquire Freeway Home Center for
$1.7 million, with remaining $500,000 to be utilized to carry the Center
for approximately 18 months at today's interest rates.
"fl6-Ol-03.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 06106/1994
Agenda Item Number: L
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DOELOPMENT DEPART~T
STAFF REPORT
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Freeway Home Center
The Commission, over the past four months, has wrestled with various issues surrounding the
financing of acquisition and rehabilitation activities related to the Freeway Home Center project.
On some key items the Chairman and Commission have been unable to reach consensus relating
to the Agency's role, if any, in bringing the project to fruition. Because of the lack of consensus,
the developer, Commission Members Pope-Ludlam and Hernandez scheduled a meeting with
staff and the developer met on May 19, 1994 to detennine if an approach could be developed that
would allow the project to move forward.
At the above referenced meeting, agreement was reached on certain key issues which has resu1ted
in the participating Commission Members being able to recommend to the full Commission the
deal points detailed in the form motion and in the attached letter.
Based upon the foregoing, the developer is requesting that the Commission adopt the form
motion.
KENNETH J. HENDERSON, Executive Director
Development Department
""-OI-03.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 0CiI06I1994
Agenda Item Number: II
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City of San Bernardino
ECONOMIC DEVELOPMENT AGENCY
Tlmotlly C. Stelnlleus
Agency Administrator
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May 25, ] 994
. Development Department
. Redevelopment
. Community Development
. Housing
. San Bernatd;no Downtown
Main Street. Inc.
. Convenffon and oris/tors
Bureau
. Office of Business
Development
Mr. Allan B. Steward
Steward & Associates
1887 Business Center Drive, Suite 3
San Bernardino, CA 92408
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Re: FREEWAYIIOMECENTER
Dear AI:
,
On May 19, 1994, Ken Henderson, Executive Dire~tor of the Agency's Development Department,
wrote you a letter confirming the approach we agr~ed upon at a meeting held May 19, 1994.
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After reviewing the information in Ken's letter and reconfirming the deal points with you and Gene
Wood, a correction to Ken's letter is in order.
The following points are the correct deal points agreed upon in our meeting on May 19, 1994:
· The Agency proposes to loan directly to Steward & Associates $300,000 for physical
rehabilitation. The $135,000 already advanced for a deposit on the property will be
part of the $300,000.
The Agency proposes to guarantee an outside bank loan in the amount ofS700,OOO
for StewaTd & Associates. Two hundred thousand dollars ($200,000) of the
$700,000 win be added to the $1.5 million expected to be received from Valley Bank
in order to close escrow on the purchase of the Freeway Home Center. The
remaining $500,000 will be utilized to finance the carry on the Center for
approximately 18 months at today's interest rate.
· Steward & Associates will contact Valley Bank immediately to authorize and pay for
an appraisal to be conducted by a bank approved appraiser.
Allan B. Steward and Gene Wood will contact Bank of San Bernardino regarding the following:
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· A $700,000 loan on substantially the same terms and conditions set forth in the Valley
Bank Letter ofInterest; and/or
/ North E Street. Third Floor' San Samerdlno. Cellloml. 92401.1507' (909) 384.5081 . (800) 232.1267' FAX {909)384-5135 II
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City of San Bernardino
ECONOMIC DEVELOPMENT A GENCY .
.~ . A $2.2 million loan from Bank of San;Bemardino on substantially the same terms and
\.i conditions as the Valley Bank Letter ofInterest.
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Mr. Allan B. Steward
Steward & Associates
May 25, 1994
Page Two
. On either the $700,000 or $2.2 million scenario, the Agency would guarantee the
Bank of San Bernardino loan.
AI, I hope this clears up any misunderstanding and please contact me if you have any questions.
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TCS:pc:M)1undr
cc: Comcilwoman Valerie Pope.Lu.dlam
Councilman Ralph Hernandez
Councilman Fred Curlin. ~LD.
E.II. Wood & Assoclllles
Kenneth IImdenon
Projcd Manager f:.mily Wong
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DEVELOPMENT DEPARTMENT
OF TIlE CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
REOUEST FOR COMMISSION/COUNClLACTlON
FROM: KENNETH J, HENDERSON
Executive Director
SUBJECT: FREEWAYHOMECENTER
DATE: June I, 1994
SVDQDSIs ofPrevioul Cnmm".lonlCOlln~Cnmmlttee AdIonl"l:
The Community Development Cnmm;..noo, over the past four months, bad discussed and taken numerous actions in
eonnection with the acquisition and teIlOVation of the Freeway Home Center.
Recommended Motlonlsl:
{CmnmODItv Develonment Cntnmlalonl
lCommll.ion M..mben Curlin. Pone-Ludl.m and Hemandez RlN"ftmm..nd.tIonl
MOTION:
That the Community Development Commission approve financing for the Freeway Home Center project
subject to the following deal points:
- The Agency to loan directly to Steward and Associates $300,000 for physical rehabilitation, with
$135,000 already advanced as deposit to be included as a part of the $300,000
Motion Continued to Next Pal!e._
, ICCZ
Administratot
(lAh~t#>>
KENNETHJ. ERSON
Executive DIrector
Contact PCIllOIl(S): Kenneth J. Henderonn
Phone: S08l
Project Area(s): South East Industrial Park (SHIPl
Supporting Data Attached: StalfRennrt.
FUNDlNGREQUlREMENTS: Amount: $30Q,0(,)0
Budget Authority:
Ward(s): Three l3l
So~: Tax Increment
Requested
CommlssionlCouncl1 Notes:
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KJH:lag:06-Ol-03.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 06106/1994
Agenda Item Number: i I
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REQUEST FOR CO~ION/COUNClLAcnON
Freeway Home Center
June I, 1994
Page Number -2-
Recommended MotionOO Continued:
IIiJ
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That the Agency guarantee an outside bank loan in $700,000 for Steward
and Associates in addition to the guarantee of$1.5 million from Valley
Bank.
Two-hundred thousand dollars of the above $700,000 will be added to
the $1.5 million from Valley Bank to acquire Freeway Home Center for
$1.7 million, with remaining $500,000 to be utilized to carry the Center
for approximately 18 months at today's interest rates.
KJH:lag:06-Ol-03.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 06106/1994
Agenda Item Numben I /
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DRELOPMENT DEPARTMAT
STAFF REPORT
Freeway Home Center
The Commission, over the past four months, has wrestled with various issues aurr011nding the
financing of acquisition and rehabilitation activities related to the Freeway Home Center project.
On some key items the Chairman and Commission have been unable to reach consensus relating
to the Agency's role, if any, in bringing the project to fruition. Because of the lack of consensus,
the developer, Commission Members Pope-Ludlam, Hernandez and Curlin and staff met on May
19, 1994 to determine if an approach could be developed that would allow the project to move
forward.
At the above referenced meeting, agreement was reached on certain key issues which has resulted
in the participating Commission Members being able to recommend to the full Commission the
deal points detailed in the form motion and in the attached letter.
Based upon the foregoing, Members Pope-Ludlam, Curlin and Hernandez recommend adoption
of the form motion.
{A,\'lI1.1..J1rlAt,JE
KENNEm J. NDERSON, Executive Director
Development Department
K1H:lag:06-O 1-03.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 06106/1994
Agenda Item Number: / /
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City of San Bernardino
ECONOMIC DEVELOPMENT AGENCY
Timothy C. Stelnhsus
Agency Administrator
-,.._.._._._~........_---_..._-_._-------- ..
May 25,1994
. Development Department
. Redevelopment
. Community Development
. Housing
. San Bemardino Downtown
Main Strear. Inc.
. Convenllon and Visitors
Bureau
. Office 01 Business
Davalopment
Mr. Allan B. Steward
Steward & Associates
1887 Business Center Drive, Suite 3
San Bernardino, CA 92408
.
Re: FREEWAY nOME CENTER
Dear Al:
,
On May 19, 1994, Ken Henderson, Executive DirePtor of the Agency's Development Department,
wrote you a letter confirming the approach we agri,ed upon at a meeting held May 19, 1994.
"
After reviewing the information in Ken's letter and reconfirming the deal points with you and Gene
o Wood, a correction to Ken's letter is in order.
The following points are the correct deal points agreed upon in our meeting on May 19, 1994:
· The Agency proposes to loan directly to Steward & Associates $300,000 for physical
rehabilitation. The $135,000 already advanced for a deposit on the property will be
part of the $300,000.
The Agency proposes to guarantee an outside bank loan in the amount of $700,000
for Steward & Associates. Two hundred thousand dollars ($200,000) of the
$700,000 will be added to the $1.5 million expected to be received from Valley Bank
in order to close escrow on the purchase of the Freeway Home Center. The
remaining $500,000 will be utilized to finance the carry on the Center for
approximately 18 months at today's interest rate.
· Steward & Associates will contact Valley Bank immediately to authorize and pay for
an appraisal to be conducted by a bank approved appraiser.
Allan B. Steward and Gene Wood will contact Bank of San Bernardino regarding the following:
.
A $700,000 loan on substantially the same terms and conditions set forth in the Valley
Bank Letter ofInterest; and/or
o
. 207 North E Stre.7, Third Floor' San Bernardino, Call7ornl. 92401.7507' (909) 384.5081 . (800) 232.7267' FAX (909) 384.5735 1/
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City of San Bernardino
ECONOMIC DEVELOPMENT AGENCY ,
o · A $2.2 million loan from Bank of San;:iiemardino on substantially the same terms and
conditions as the Valley Bank Letter of Interest.
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Mr. Allan B. Steward
Steward & Associates
May 25, 1994
Page Two
· On either the $700,000 or $2.2 million scenario, the Agency would guarantee the
Bank of San Bernardino loan.
AI, I hope this clears up any misunderstanding and please contact me if you have any questions.
o
TCS:pc:"')tllndr
cc: Councilwoman Valerie Pope-Ludlam
Councilman Ralph Hernandez
Councilman Fred Curlin. MD.
E.II. Wood & Asroci....
KCIIt1dh lIendenon
Project Manager Emily Wong
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